It\u2019s the dream scenario: with savings secured and decades of hard work in the rearview, you walk into the office for the final time, wave goodbye and ride off to enjoy a long and restful retirement.<\/p>\n
According to a recent survey, many Americans believe that dream should begin a few years earlier than usual.<\/p>\n<\/p>\n
The survey, conducted by Empower<\/a>, showed that the majority of respondents believe the average retirement age should be 58 \u2014 well ahead of the current average retirement ages<\/a> of about 64 (men) and 62 (women) respectively.<\/p>\n And while that sounds wonderful, the same survey showed that Americans believe, on average, that a person should be debt free by the time they\u2019re 41. The reality, however, is that Americans aged 43 to 57 carry the largest amount of debt out of any age group \u2014 almost $1.45 trillion more than the next highest age group (27 to 42).<\/p>\n So while it\u2019s nice to dream about retiring at 58, exactly how realistic is it?<\/p>\n Retirement looks different for everyone, so determining if you have enough money saved to retire by age 58 depends solely on your wants and needs. There are numerous online calculators to help you determine your specific retirement wealth requirements, but SmartAsset crunched some general numbers for retiring at age 58, while assuming a lifespan of 100 years.<\/p>\n The calculation<\/a>, based on an average annual withdrawal of at least $50,000 (but likely more due to inflation) and an investment portfolio with a rate of 5% annual growth, showed that you\u2019d need $1.34 million saved to retire at age 58.<\/p>\n Those with pensions, or collecting Social Security when they become eligible, will add a bit more of a cushion to that. But still, that\u2019s just your base, day-to-day living.<\/p>\n As Citizens Bank notes<\/a>, \u201cIt’s important to determine your post-retirement spending based on your expected lifestyle.\u201d<\/p>\n \u201cExpected lifestyle\u201d is the key phrase here. If you intend to spend your retirement traveling or indulging in other activities that may raise costs. For example, if you plan on joining a golf or country club, spending more on entertainment and eating out, or buying that dream car you always wanted \u2014 then you\u2019ll need to have more money put away to accommodate that.<\/p>\n Story Continues <\/p>\n Other considerations include the cost of health care \u2014 based on both your own health and family history. A recent Fidelity report<\/a> showed that the average American retiree could spend $172,500 on health care during their retirement. Fidelity added that the number \u201crepresents a more than 4% increase over 2024 and continues the general upward trajectory\u201d since their first report in 2002, with just $80,000 estimated.<\/p>\n And that 2025 estimate assumes that the retiree is 65. A 58-year-old would have to plan for another seven years on top of that, before Medicare kicks in. As well, the estimate doesn\u2019t include the cost of long-term care.<\/p>\n Another consideration is where you live.<\/p>\n In July, GOBankingRates analyzed<\/a> how much money you\u2019d need saved to retire in each state, taking into account only basic living expenses. The discrepancy between the most expensive state (Hawaii at $2.2 million) and least expensive (West Virginia at $713,000) is stark and, again, assumes a retirement age of 65. Factors such as retiring years earlier, at 58, and the lifestyle you\u2019d like to live in retirement, as well as your health needs will all bump those numbers higher.<\/p>\n Taking a closer look at these important factors and how they affect your own retirement will go a long way to helping you decide if kicking your feet up at 58 is a reality.<\/p>\n Read more: Do you own rental properties in the US? These 6 hacks can help you boost your income and lower your tax burden<\/a><\/p>\n In addition to naming 58 as their ideal retirement age, the Empower survey also gleaned that 45% of Americans wish they had begun saving for retirement sooner \u2014 which suggests that many aren\u2019t on track to retire at 58. That\u2019s backed up by a 2025 AARP survey<\/a> that found 64% of adults over 30 worry about having enough money in retirement.<\/p>\n That said, there are ways to catch up<\/a> and make your retirement dream a reality.<\/p>\n T. Rowe Price<\/a> suggests focusing \u201cless on the shortfall and more on the incremental steps you can take to rectify the situation.\u201d That, they say, could include taking advantage of company retirement matching plans, increasing the amount of savings you regularly put aside and finding places in your budget to cut costs.<\/p>\n Meanwhile, try maximizing contributions to your 401(k) and opening up a Roth IRA<\/a> to boost retirement savings. This is especially important for anyone already over age 50 as they can make a catch-up, according to the IRS\u2019s annual contributions rules<\/a>.<\/p>\n And, Citizens Bank advises investing any extra money you come into \u2014 from pay raises to bonuses to sudden windfalls like an inheritance \u2014 to help bolster retirement savings.<\/p>\n As well, a side hustle \u2014 be it driving for Uber part time or opening your own crafty Etsy shop, or anything in between \u2014 can also put a little extra cash in your pocket that could come in handy if you\u2019re planning to hand in that resignation notice when you turn 58.<\/p>\n